I sent an email to Investor Relations yesterday and I’m sharing their response.
My Questions:
I was checking out the timeline on the company website and it looks like some things got pushed back a quarter. Is there any reason for concern or typical stumbling blocks and production delays?
Also, when can we expect sales information on Canada product launch?
Joe’s Response:
We will be issuing a news release soon to bring investors up to speed on what has, is, and will be occurring. But long story short, as mentioned in previous news releases, during our soft launch in 2023 we ran into complications with the manufacturer so we pulled the product from the market. We had planned to use them until our long term CGM that would also be used for human health was ready for market but due to manufacturing issues regarding yield and capacity combined with the difficulty and expense of using a two piece CGM design we decided to switch to another company as a temporary solution so we could get the product back on the market in early Q3 2023. After many delays and missed deadlines the temporary supplier offered us an interim model to use but we were not satisfied with it and ultimately could not come to an agreement on the original model they offered us or the next generation model they were developing. Because these trials and negotiations took so long we were able to forego the use of any temporary CGM hardware and move forward with our long term model that we are currently using.
The CGM hardware is being manufactured by one of the biggest and most well-known high-tech manufacturers in the world, but we have run into various delays over the past few months because of supply chain issues with materials needed and from adjustments to the hardware, software, and manufacturing line. Whether you’re making 10 or 10,000 units It takes a month to manufacture a batch of CGMs on a production line, a week to ship, and two weeks to test so you can see how the time adds up quickly.
The demand for the GluCurve Pet CGM is staggering, we had over 750 clinics come by our booth at WVC in two and a half days and all of them were interested in ordering. I hope shareholders appreciate that the alternative to a CGM is a glucose curve which most doctors we talked to at WVC flat out will not do and don’t offer because of the expense, unreliable data, and shot duration of readings. While using the human CGM Libre 2 is a big improvement over glucose curves, it is extremely problematic for a number of reasons and veterinarians are truly desperate for a solution that is designed for them which we are offering.
We should start filling Canadian orders in the coming months and then we will be relaunching in the US through Covetrus, EU through Covetrus, and in various other parts of the world direct to market or through local distributors. Lastly, I want to reiterate that neither I, nor others in the company have ever been as excited for the future prospects of ALRT and are working diligently to achieve success for shareholders. As you may know, company insiders are the biggest shareholders so your success and our success are one and the same thing.
V/r
Joe Stern
Head of Animal Health
Joe.Stern@alrt.com
